Indian Oil Corp. Ltd. · NSE:IOC
Indian Oil — Investor Presentation (June 2014)
30 slides from Indian Oil's investor presentation, Jun 20, 2014
Slide 1: Fund Manager & Analyst Meet Presentation
Fund Manager & Analyst Meet Presentation June 20, 2014
Slide 2: Contents
Contents Corporate overview Key Businesses & Initiatives Refining Pipelines Marketing Petrochemicals Future Plans 2
Slide 3: Indian Oil Corporation: The Future of India Energy
Indian Oil Corporation: The Future of India Energy ● 10 refineries with 65.7 MMTPA Capacity Largest Refiner in the Country ● 31% of Domestic Refining Capacity Pan-India Pipeline Infrastructure ● 11,000+ km crude oil, products and natural gas pipelines with a total capacity of 77.5 MMTPA Leading Mark
Slide 4: Financial Results 2014
Financial Results 2014 (Rs./crore) FY 2013 FY 2014 Segment EBITDA : FY 2013-14 Turnover 4,14,909 4,57,553 EBITDA 17,284 19,023 Net Profit 5,005 7,019 Refining, 9% Net Worth 61,124 65,992 Petchem, 11% Gross Debt (1) 80,894 83,214 Core Debt(2) 56,548 60,072 Pipelines, 26% Debt-Equity Ratio 1.32 1.26 M
Slide 5: IOC - The Largest Refiner in India
IOC - The Largest Refiner in India Leader in Refining Market Share(1) Nelson Complexity Industry Capacity – 215 MMTPA Refinery Index IOC Group Capacity – 65.7 MMTPA 31% Digboi 11 28% Panipat 10.5 Haldia 10.4 Gujarat 10 Mathura 8.4 14% Bongaigaon 8.2 11% 9% Barauni 7.8 7% Guwahati 6.7 Total 9.6 Parad
Slide 6: Crude Mix and Distillate Yield
Crude Mix and Distillate Yield Crude Mix Steady Distillate Yields (%) 50.9 50.8 47.6 78.1 78.1 77.8 11.0 7.4 8.4 FY 12 FY 13 FY 14 FY 12 FY 13 FY 14 HS (%) Heavy/ High TAN (%) Note: All figures for the year ended March 31 of the respective years. 6
Slide 7: Refinery Projects – Crossing Milestones
Refinery Projects – Crossing Milestones Strengthening Downstream Integration • Cost: Rs. 1000 crore; Commissioned: January, 2014 Fluidized Catalytic Cracking unit • Unit capacity enhanced to 1.5 MMTPA from 1.3 MMTPA Revamp at Mathura • Improved profitability • Maximized production of value-added Pro
Slide 8: Refinery Projects – The Way Forward
Refinery Projects – The Way Forward Paradip Refinery from Aspiration to Reality • Cost Rs.32,710 crore • Complexity Factor 12.2 • Crude mix: 100% HS; 40% Heavy • Distillate yield 81% • On the verge of completion Value addition through process optimization • Estimate cost: Rs. 3076 crore • Capacity i
Slide 9: Unparalleled Network of Cross Country Pipelines
Unparalleled Network of Cross Country Pipelines Leading Pipeline Network Jalandhar Length Capacity Ambala (KM) Bhatinda Roorkee Sangrur Najibabad Crude Oil Pipelines 4,448 40.40 MMTPA Panipat Rewari Meerut Rewari Delhi Product Pipelines 6,632 37.09 MMTPA Sanganer Mathura Tinsukia Ajmer Bongaigaon Di
Slide 10: Unparalleled Network of Cross Country Pipelines
Unparalleled Network of Cross Country Pipelines Steady Revenue Stream and Healthy EBITDA Margins Excellence in operating parameters • Over 113% capacity utilization of Crude oil pipelines EBITDA 76% 76% 76% Margin: • Supported the refineries through heavy crude blending 6,521 6,516 Rs. crore Emphasi
Slide 11: Marketing: Reach in Every Part of the Country
Marketing: Reach in Every Part of the Country Pan India Presence with Multiple Consumer Touch Points Leading Market share (%) in domestic sales(2) Others 323(1) LPG Bottling SKO / LDO 35 Distributorships Dealerships Over 41,640 7,035 50 53 49 3,930 Customer 56 Others touch-points . Retail Outlets Bu
Slide 12: Control over Retail Segment
Control over Retail Segment Focused on strengthening the position in retail Key Initiatives Segment-wise RO share(1) Continued thrust to commission ROs 19,862 23,330 Urban positioning in strategic sites of metros and major 51 50 towns 6,173 Thrust on rural penetration due to high 35 34 31 growth
Slide 13: Path Forward
Path Forward • Brownfield capacity expansions especially at advantaged inland refineries Refinery Gujarat Refinery (MMTPA) Mathura Refinery (MMTPA) Panipat Refinery (MMTPA) 18.0 20.2 13.7 11.0 15.0 Expansion 8.0 • A grass root refinery at west coast • Diversification into gas pipeline business Pipel
Slide 14: Petrochemical Capacity Growth
Petrochemical Capacity Growth FY 2003-04 (KTA) FY 2013-14 Others, 155 LAB, 120 LAB, 120 SBR, 120 Butadien, 138 Polymers, Glycols, 325 1250 PTA, 553 2661 Capex (Rs./crore) LAB, Gujarat 1,191 PX/PTA Panipat 4,562 Naphtha Cracker, Panipat 14,019 SBR 175 Butadiene Extraction Unit 210 Butene-1 125 Total
Slide 15: Leading Producer of Petrochemical Products
Leading Producer of Petrochemical Products Sales Breakup (in KTA) Achievements 2077 2116 • Product basket increased to 36 149 176 1549 Others polymers 314 330 76 • 9 OEM approvals obtained for 228 Glycols polymer products 931 1095 • Highest ever export of 125 TMT to 614 Polymers 46 countries PX/PTA
Slide 16: Leading Producer of Petrochemical Products
Leading Producer of Petrochemical Products EBITDA & Revenue (in Rs. crore) Product-wise EBITDA Margins(1) 6% 9% 10% 71% 20,577 17,612 12,513 20% 2,036 6% 1,519 3% 756 FY 12 FY 13 FY 14 LAB PTA Polymers Others EBITDA Revenue EBITDA Margin (1)All figures for the year ended March 31, 2014 16
Slide 17: Backward Integration Through E&P
Backward Integration Through E&P IOC: E&P Capabilities Status of Domestic and Overseas Blocks (No.) Stake in 23 exploration blocks 13 Domestic blocks – With ONGC / OIL / GAIL / GSPC / Petrogas / HPCL / HOEC / AWEL (20% -100% 2 CBM Blocks participating interest) – Including 2 Coal Bed Methane blo
Slide 18: Overseas Producing Blocks
Overseas Producing Blocks Pacific NorthWerst LNG, Canada Niobrara Shale Asset, USA Acquired in 2013 Acquired in 2012 Reserves IndianOil Share: • Potential Reserves: 46.35 Tcf (1) • Cumulative Production: LNG, • 2P Reserves: 8.35 Tcf Canada 10% (10 MMBOE) (2) • 1P Reserves: 2.69 Tcf • 211,000
Slide 19: Diversified Across Geographies and Energy Sources
Diversified Across Geographies and Energy Sources Geographical Diversification IndianOil Mauritius Ltd. • Aviation, terminal & retail business (IOML) • 70% market share in aviation (100% Stake) • 25% market share in POL sales Lanka IOC Plc. • Storage terminal & retail business (75.1% Stake) • 19% ma
Slide 20: Diversified Across Geographies and Energy Sources
Diversified Across Geographies and Energy Sources Gas – Stepping on the Pedal Gas Ennore LNG Import Terminal • Estimate cost – Rs.4,320 crore • Network in 4 cities: City Gas Distribution (CGD) • Operational: Agra and Lucknow • Upcoming: Chandigarh and Allahabad • Mehsana-Bhatinda (77.11 mmscmd) • Bh
Slide 21: Diversified Across Geographies and Energy Sources
Diversified Across Geographies and Energy Sources Diversification Across Sources Nuclear ● 26% JV with Nuclear Power Corporation of India to establish nuclear plant at Rawatbhatta; Investment of Rs.961 crore ● Likely to be commissioned by 2016-17 Wind Power ● 21MW plant at Kachchh; Second plant of 4
Slide 22: Strong Focus on Research and Development
Strong Focus on Research and Development Active Patents Portfolio Total Patents: 292 By Geography Lubes By Division (87) 10% 30% (28) 48% 33% Deployment o in-house (97) (140) technologies 57% 22% (167) (65) India USA Others Lubes Refineries Others Focus on Product & Technology INDMAX Technology deve
Slide 23: Investing In Future Growth
Investing In Future Growth XI Plan Capex: 2007-08 to 2011-12 XII Plan Capex : 2012-13 to 2016-17 (1) Others, 1% Petchem, Others, 5% 4% Petchem, 27% E&P, 28% Ref, 47% Ref, 60% E&P, 3% Mkting, 1% Pipelines, Pipelines, 8% Mkting, 3% 12% Rs.48,655 crore Rs.56,200 crore (1) Capex for future periods subje
Slide 24: Under Realization & Compensation
Under Realization & Compensation Finalization of Under Recovery Sharing on Annual Basis Burden of Under – Recovery Sharing (Rs. crore) FY 12 FY 13 FY 14 0% 1% 1% Net under- Gross Under – 75,469 85,793 72,938 realization realization 51% 60% 62% Cash Upstream Discount 29,961 31,967 34,673 compensation
Slide 25: Rationalization of Under Realization
Rationalization of Under Realization Recent Steps Steps taken on 18th Jan 2013: Dual pricing introduced for HSD o Market Determined Prices for Bulk Customers (e.g. Railway, Defense, State Transport etc.) o Oil Marketing Companies (OMC) authorized to increase the retail price by about 40-50 paisa p
Slide 26: Our Differentiators: Strong Financials
Our Differentiators: Strong Financials Turnover (in Rs. Crore) EBITDA (in Rs. crore) 457,553 414,909 21,919 373,926 19,023 17,258 FY 12 FY 13 FY 14 FY 12 FY 13 FY 14 Net Profit (in Rs. crore) and Dividends 50% 62% 87% 7,019 5,005 3,955 FY 12 FY 13 FY 14 Dividend Paid (% face value) Note: All figures
Slide 27: Our Differentiators: Strong Financials
Our Differentiators: Strong Financials Net Worth (in Rs. Crore) Asset Base(1) (in Rs. Crore) 65,992 147,480 132,404 120,953 61,124 57,877 FY 12 FY 13 FY 14 FY 12 FY 13 FY 14 Debt / Equity (Times) Core Debt / Equity(2) 1.30x 1.32x 1.26x 0.94x 0.93x 0.91x FY 12 FY 13 FY 14 FY 12 FY 13 FY 14 (1)Compris
Slide 28: Our Differentiators: Strong Financials
Our Differentiators: Strong Financials Debt & Liquid Investments (in Rs crore) 83,214 2,609 66,000 5,772 20,533 11,693 11,616 35,584 25,640 FY14 Jun-14 (1) Oil Bonds received from Government of India in lieu of compensation till the year FY 2009 28 (2) Figures of June 14 are provisional
Slide 29: Why to invest in IOC?
Why to invest in IOC? India’s Largest Oil Company …Focused on Creating Shareholder Value 1 Dominance in downstream sector 2 Unparalleled infrastructure in all segments Integrated business operations likely to extend competitive advantage in complete 3 deregulated scenario 4 Investments in Pe
Slide 30: Thank you
Ceeal eearaiae C—O LOL—L———————__ Thank you